The Association of Mobile Money and Bank Agents in Nigeria has said the recent increase in service charges was to ensure Point of Sale operators survive and remain in business.
It said the increment attempt in Lagos, Ogun, and Edo states was a direct response to the current economic realities in the country, noting that the cost of production has increased significantly.
The proposed increment had attracted reactions from the Central Bank of Nigeria and the Federal Competition and Consumer Protection Commission.
But responding in a statement signed by the National Public Relations officer, Oluwasegun Elegbede, on Wednesday, the association stressed that surging inflation has negatively impacted the “Cost to serve” adding that agency business has become unprofitable for its agents.
The statement read partly, “The recent action, in direct response to the current economic realities in the country, aims to ensure that agents can continue to stay in business.”
“It is essential to remember that our services are not subsidized by the CBN or any of the operators. The burden of the current economic reality lies squarely on the shoulders of each and every agent.
“Today, the average agent faces numerous challenges, including surging inflation, overhead costs (such as source of funding, rent, staff salaries, POS paper costs, data subscriptions, security, multiple taxation/levies), and various risks such as loss of funds through licensed operators’ channels, fraud, and robbery.”